Capital Investment Advisors

Wes Moss Featured On SmartAsset: Market Correction- Definition, Duration and Everything Else You Need to Know

How Common Is a Market Correction?

With the S&P 500 seeing two corrections in 2018 (February and December), you might think that corrections are common. Or if you looked at the years 1991 to 1997, when there were no technical corrections, you might think they are infrequent. On average, corrections happen every 1.7 years – and last 112 days, according to Wes Moss, chief investment strategist at Capital Investment Advisors.

If it surprises you to hear that corrections only happen roughly every other year, you probably watch a lot of financial cable news. As prices slide, business reporters start talking about heading into “correction territory.” Indeed, since the Great Recession, the S&P 500 has had seven dips that were 5.8% to 9.9% off the index’s peaks, on top of six actual corrections. That’s 13 news cycles of hearing about corrections in the past 10 years, while there have been only 22 real corrections in the past 45 years (since 1974), according to Charles Schwab & Co.

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This article is being reproduced and made available with the permission of SmartAsset. The article was written and produced by Caroline Hwang. This information is provided to you as a resource for informational purposes only and should not be viewed as investment advice or recommendations.  Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved.  There will be periods of performance fluctuations, including periods of negative returns.  Past performance is not indicative of future results when considering any investment vehicle. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make.  An investor should always consult their investment professional to determine what is suitable for their specific situation. Investment decisions should not be made based on information contained in this article. The information contained in the article is strictly an opinion and for informational purposes only and it is not known whether the strategies will be successful. There are many aspects and criteria that must be examined and considered before investing.

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